Correlation Between Anshan Senyuan and Fujian Longzhou
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By analyzing existing cross correlation between Anshan Senyuan Road and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Anshan Senyuan and Fujian Longzhou and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Anshan Senyuan with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anshan Senyuan and Fujian Longzhou.
Diversification Opportunities for Anshan Senyuan and Fujian Longzhou
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anshan and Fujian is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Anshan Senyuan Road and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran and Anshan Senyuan is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Anshan Senyuan Road are associated (or correlated) with Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Anshan Senyuan i.e., Anshan Senyuan and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Anshan Senyuan and Fujian Longzhou
Assuming the 90 days trading horizon Anshan Senyuan Road is expected to under-perform the Fujian Longzhou. But the stock apears to be less risky and, when comparing its historical volatility, Anshan Senyuan Road is 1.22 times less risky than Fujian Longzhou. The stock trades about -0.31 of its potential returns per unit of risk. The Fujian Longzhou Transportation is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 529.00 in Fujian Longzhou Transportation on October 11, 2024 and sell it today you would lose (117.00) from holding Fujian Longzhou Transportation or give up 22.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anshan Senyuan Road vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Anshan Senyuan Road |
| Fujian Longzhou Tran |
Anshan Senyuan and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anshan Senyuan and Fujian Longzhou
The main advantage of trading using opposite Anshan Senyuan and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anshan Senyuan position performs unexpectedly, Fujian Longzhou can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Anshan Senyuan vs. Beijing Mainstreets Investment | Anshan Senyuan vs. Ye Chiu Metal | Anshan Senyuan vs. Rising Nonferrous Metals | Anshan Senyuan vs. Guangdong Jingyi Metal |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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